Victorian auditor-general to review 40-year lottery licence extension

The investigation will examine whether the Victorian government ensured transparency and competitive value when negotiating the US$821m long-term licence extension with The Lottery Corporation.

Australia.- Victoria’s auditor-general will investigate the government’s decision to grant a 40-year extension of the state lottery licence to The Lottery Corporation following criticism from opposition parties and gambling reform advocates over transparency. The probe will examine whether the government followed a robust process during negotiations and whether there was enough competition to maximise value for the state.

The agreement, announced earlier this month, extends the company’s Victorian Public Lottery Licence until June 30, 2068, replacing the traditional 10-year cycle. In return, The Lottery Corporation will pay the state government A$1.15bn (US$821m) in two instalments later this year.

The controversy centres on legislation passed in June 2025 that gave the gaming minister powers to privately negotiate long-term licence extensions. Previously, only 12-month extensions were allowed without a competitive bidding process.

Critics argue the changes enabled the government to negotiate directly with The Lottery Corporation behind closed doors, well before the existing licence’s 2028 expiry date. Opposition leader Jess Wilson accused the government of failing to ensure transparency and of using the deal to help limit the state’s growing debt levels. Gambling reform advocate Tim Costello also criticised the extension, saying the process lacked openness.

The Victorian government defended the agreement, describing it as “the highest value lottery licence return in Australian history”. Officials said the process included market assessments and oversight from an independent probity adviser and review panel.